Pakistan’s primary gas suppliers, Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL), are moving to raise gas prices significantly to address revenue gaps this fiscal year. OGRA (Oil and Gas Regulatory Authority) has scheduled public hearings for November 5 and 8 to consider these proposals.
SSGCL aims for a steep 53.5% hike, adding Rs. 669.07 per mmBtu, which would bring rates from Rs. 1,251.32 to Rs. 1,920.39 per mmBtu. Additionally, it is asking for Rs. 643 billion to cover previous years’ deficits, equivalent to Rs. 3,073.91 per mmBtu, along with Rs. 46.13 per mmBtu for RLNG services.
On the other hand, SNGPL seeks a smaller increase of 3.66% or Rs. 64.16 per mmBtu, which would shift its average price from Rs. 1,746.22 to Rs. 1,810.38 per mmBtu. This request includes Rs. 489 million for its LPG Air Mix Project and Rs. 304.27 per mmBtu to cover RLNG service costs, incorporating RLNG diverted to domestic users.
If OGRA approves, these hikes will impact all consumer categories across the board. Given the existing economic pressures in Pakistan, this potential rise could deepen affordability concerns and strain consumers further.
